Tax incentives urged for studios

SACRAMENTO — Gov. Arnold Schwarzenegger said Friday that California must boost tax incentives to movie and TV studios to help keep productions from moving out of state.

He said incentive offerings by other states were luring studios away and costing California tens of thousands of jobs.

Spokesmen for the Legislature expressed support for the idea but worried about the effect of lost taxes when California is struggling with a budget deficit the governor said could reach $20 billion next year.

Schwarzenegger's comments were sparked by Walt Disney Co.'s ABC Studios plans to move production of its popular "Ugly Betty" TV series from Los Angeles to New York.

Feature film, television and commercial production in the Los Angeles area was down 23% in the first three months this year from last year, said FilmL.A. Inc., a private group advocating city film business.